Glossary of terms

Block Explorer

A tool used to view all transactions, past and current, on the blockchain. Block explorers provide useful information and can be used to verify wallet addresses or track activity.

Public Address

A public address in crypto is a unique, shareable alphanumeric code (like a bank account number) used to receive digital assets. It is generated from a private key using cryptography, allowing anyone to send funds to it while only the owner with the private key can withdraw.

USDC

USD Coin (USDC) is a regulated stablecoin pegged 1:1 to the U.S. dollar, issued by Circle. Each token is backed by cash and short-term U.S. Treasuries held in reserve, with regular attestations from independent accounting firms. Because it holds a steady value and settles on public blockchains in minutes, USDC is widely used to move large sums for purchases like real estate without the volatility of other cryptocurrencies.

Tether (USDT)

Tether (USDT) is the oldest and most widely traded stablecoin, launched by Tether Limited in 2014 and pegged 1:1 to the U.S. dollar. It is backed by a reserve of cash and other assets and is available across many blockchain networks. USDT offers deep liquidity worldwide, making it one of the most common ways to hold or transfer dollar value on the blockchain.

Ethereum

Launched in 2015, Ethereum is a decentralized platform for building applications and tokens using smart contracts. Unlike Bitcoin's focus on digital money, Ethereum enables developers to create decentralized apps (dApps) that operate without downtime or intermediaries. Users pay for transactions using its native cryptocurrency, ether (ETH), the second-largest by market cap.

Fiat Currency

Fiat money is a type of currency issued by governments that isn't tied to a physical commodity like gold or silver. Its value comes from the authority of the issuing government and the balance between supply and demand. The U.S. dollar is one of the most well-known examples of fiat currency.

Gas Fee

A gas fee is the cost paid to a blockchain network to process and confirm a transaction. It compensates the network for the computing power needed to validate the transfer and varies with how busy the network is. Think of it like a wire or transaction fee — a small charge required to move your assets, separate from the amount being sent.

Conversion Fee

A conversion fee is the cost of converting one form of money into another — in a crypto transaction, typically exchanging cryptocurrency for U.S. dollars (or the reverse). It's usually a small percentage of the amount converted and covers executing the exchange at a fair market rate. Knowing the conversion fee upfront helps buyers and sellers understand the full cost of paying with crypto.

Network / Chain

A network (or chain) is the specific blockchain a digital asset lives and moves on. Different assets run on different networks — bitcoin moves on the Bitcoin network, while ether and many stablecoins move on the Ethereum network. The same asset can sometimes exist on multiple networks, so it's important to confirm the correct one when sending funds, since assets sent on the wrong network can be lost.

Earnest Money / Good Faith Deposit

Earnest money (also called a good faith deposit) is an upfront payment a buyer makes to show they're serious about purchasing a property. It's held in escrow and typically applied toward the purchase at closing. If the buyer backs out for reasons not allowed by the contract, they may forfeit this deposit to the seller.

Settlement / Closing

Settlement (or closing) is the final step of a real estate transaction, when ownership officially transfers from seller to buyer. Funds are disbursed, the deed is recorded, and all parties sign the required documents. In a crypto transaction, digital assets are typically converted and settled into the escrow account before this step, so the closing follows the traditional process.

Custody / Qualified Custodian

Custody refers to how and where digital assets are held and safeguarded. A qualified custodian is a regulated institution authorized to hold assets on behalf of clients, subject to strict security, auditing, and compliance standards. Using a qualified custodian reduces the risk of loss or theft and is an important consideration when large sums move through a transaction.

Money Transmitter License (MTL) / MSB

A Money Services Business (MSB) is a company that handles activities like transferring or converting money, including exchanging crypto for cash. To operate legally, an MSB generally must register with FinCEN and obtain a Money Transmitter License (MTL) in each state where it does business. These licenses require companies to follow anti-money-laundering rules and consumer protections, signaling that a provider operates within the regulated financial system.

Travel Rule

The Travel Rule is a regulation requiring financial institutions — including crypto businesses — to share certain sender and recipient information when transmitting funds above a set threshold. Its purpose is to prevent money laundering and illicit transfers by ensuring transactions can be traced. For crypto, it means regulated providers must collect and pass along identifying details on qualifying transfers.

FinCEN

FinCEN (the Financial Crimes Enforcement Network) is a bureau of the U.S. Department of the Treasury that combats money laundering and financial crime. It sets and enforces rules that financial institutions and crypto businesses must follow, including registration, reporting, and anti-money-laundering requirements. A provider registered with FinCEN operates under federal oversight.

Proof of Control

Proof of control demonstrates that a person actually owns and controls the wallet holding their crypto — not just that the assets exist. The most common method is signing a message: the wallet owner uses their private key to produce a digital signature tied to their public address, proving ownership without exposing the key or moving any funds. This guards against someone presenting assets that aren't truly theirs.